Low Value Consignment Relief abuse must end says FSB

The Federation of Small Businesses (FSB), in a direct letter to the European Commission is asking the EU for insurance that the end to abuse of the Low Value Consignment Relief (LVCR) will be done via the UK Government.
Mike Cherry, the FSB national chairman, described in a letter on behalf of the 200,000 members the failure of the UK to protect VAT on internet causing grave consequences for the EU market with regard to fair competition on the internet and hopes the EU takes strong action to stop immediately such tax avoidance.
A little known 1983 European Directive is where LVCR comes from that exempts from VAT, goods of less than £18 that are from outside the EU. The directive was introduced originally to help the horticultural industry in the Channel Islands so their plants and flowers were not held up in customs buildings.
For the last six years UK’s large retailers and Channel Island businesses are importing to the Channel Islands, UK and EU products and then selling them back to the UK via internet and mail order making them free of paying VAT. While companies onshore that have to charge VAT are suffering so much, they are going out of business. Initially it was with DVD’s and CD’s but now there are other products like ink cartridges and memory cards.
He continues in his letter to say that the UK Government is not protecting the UK small business from VAT abuse because of the lenient application to the LVCR and the allowance of circular shipping thus making it virtually impossible for the small retailer to compete with the giants that have been able to set up shop in the Channel Island to avoid VAT.